The Federal Reserve’s January meeting minutes revealed discussions about potentially slowing quantitative tightening, leading to a 2.1% increase in Bitcoin’s price from $94,134 to $96,180
U.S. retail and institutional investors showed decreased buying interest, with ETF outflows reaching $129.10 million on February 18th
Over 28,000 BTC (worth more than $2.6 billion) was accumulated by OTC addresses linked to long-term holding
Net spot market activity shows $314.70 million more Bitcoin bought than sold in the past week
A major liquidation level exists at $92,930.28, with $136.1 million in buy orders placed at this price point
Bitcoin’s price action showed mixed signals in recent trading, as various market participants displayed divergent behavior. The cryptocurrency rose 2.1% following the Federal Reserve’s January meeting minutes release, which indicated potential changes in monetary policy.
The price movement took Bitcoin from $94,134 to $96,180 within an hour after the Federal Reserve released its meeting minutes. The documents revealed that policymakers discussed the possibility of slowing or pausing their balance-sheet reduction program, citing concerns about the debt ceiling.
U.S. retail investors demonstrated reduced buying activity after the market opened, according to the Coinbase Premium Index (CPI). This metric, which tracks U.S. retail investor activity on Coinbase compared to other exchanges, dropped below zero, indicating increased selling pressure.
The institutional investment landscape showed similar patterns. February began with positive momentum as spot Bitcoin ETFs recorded an inflow of $70.60 million. However, the trend reversed on February 18th, when these investment vehicles experienced a substantial outflow of $129.10 million.
This selling pressure from institutional investors continued a pattern observed from February 10th to 13th, as various institutions reduced their Bitcoin holdings. The consistent outflows suggest a cautious approach from traditional financial players.
Whales vs Wall Street
Despite the selling pressure from institutional sources, other market segments showed strong buying activity. Data from CryptoQuant revealed that addresses associated with over-the-counter (OTC) trades for long-term holding accumulated more than 28,000 Bitcoin, valued at approximately $2.6 billion.
The spot market data supported this accumulation trend. Over the past week, buying exceeded selling by $314.70 million, indicating sustained demand from certain market participants. This pattern of Bitcoin accumulation has remained consistent since January 2025.
Technical analysis of the market structure revealed a notable liquidation level at $92,930.28. This price point currently holds $136.1 million worth of Bitcoin buy orders, potentially acting as a strong support level. Historical patterns suggest that such liquidation levels often attract price movement.
The Treasury Department has implemented extraordinary measures to maintain federal government expenses since reaching the statutory debt limit in January. This situation has added another layer of complexity to market dynamics.
Former President Donald Trump has expressed support for House Republicans’ proposal to raise the debt ceiling by $4 trillion. However, the negotiation process is expected to extend over several months, creating uncertainty in financial markets.
Federal Reserve policymakers are monitoring various economic factors, including potential policy changes that could affect inflation, labor markets, and overall economic growth. These factors include proposed increased tariffs on U.S. trading partners and immigration restrictions.
Current futures markets suggest investors are pricing in one rate cut in 2025, with the possibility of a second cut. This outlook has influenced trading strategies across various market segments.
Bitcoin’s monthly performance shows a 12.42% decrease over the past 30 days. However, recent 24-hour performance indicates a modest gain of 0.26%, suggesting short-term price stabilization.
Market liquidity remains a key factor in Bitcoin’s price action. The presence of large buy orders at specific price levels could influence future price movements, particularly if market conditions trigger increased trading activity.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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